Australian British Chamber of Commerce on referendum

Published 27th June

(from the Australian British Chamber of Commerce)

Following the result of the UK’s vote in the EU Referendum last week, the result of which was a win to the Leave campaign, many businesses have been asking what does this mean for Trade and Investment between Australia and the UK.

In summary, the current situation is this:

The Leave campaign won the referendum by 17,410,742 votes to the Remain campaign’s 16,141,241, or by 51.9% to 48.1%.

The referendum is non-binding. Meaning that, of itself, it does not have the effect of starting the exit of Britain from the EU, or Brexit. That must be done formally.

Prime Minister David Cameron has indicated that he will not invoke Article 50 of the Lisbon Treaty, which sets the clock running for the negotiations on a British Exit from the EU.

Mr Cameron has indicated that he will step down before the party Conference in October, so that a new leader may lead the nation through this change.

Therefore, given the current circumstances, there is no change to the underlying business conditions in the UK. There are also no changes to travel, visa requirements or other related activity.

We have seen the result of the vote lead to significant falls in both the Pound against other currencies and financial markets globally. This instability will likely continue while there is adjustment to the uncertainty in the next steps for the UK.

The Bank of England stands ready to inject up to GBP250bn to ensure the continued proper functioning of markets.

The Australian British Chamber of Commerce will continue to provide information to its Members on the ongoing discussions, outcomes and concerns of business related to the vote. We will continue to receive briefings from the UK and Australian Governments and the private sector.

As a first step, the Chamber will hold a webinar this Thursday evening Sydney time, with further updates through a seminar series in the week of the 25th of July. More details of these will be released this week.

For further information, we have published a number of responses to the vote on our website www.britishchamber.com

Background on the Australian British Chamber of CommerceThe Australian British Chamber of Commerce is the leading bi-lateral business group for the Australian British relationship based in Australia, representing over 350 entities and reaching over 22,000 people through their network. The Chamber has been supporting business between the countries for over 100 years and works collaboratively to promote and support the interests of both UK and Australian businesses in their participation in the trade and investment flows between the two countries.

Important information for travellersThere will be no immediate or sudden changes to the rights or status of UK passport holders. The UK must now consider and negotiate new arrangements with the EU, including on these rights. This will take time.

There will be no immediate changes to passports or rule around passports. Guidance on any future changes will be communicated accordingly.